Research on Enterprise Strategy Based on Porter’s Five Forces Analysis Model—Taking Dick Smith as an example

Abstract

This article firstly provides a brief introduction of Dick Smith. Then, the article analyze the general environment of Dick Smith, including economic trend, technological change and demographic impact. After that, the article identify the industry environment of Dick Smith, followed by analysis of issues in the competitive environment through identifying five forces of which. In addition, this report describes Dick Smith’s current strategies. At last, the article explain the reasons why Dick Smith’s strategies were unsustainable, and point out the main reason contributes to its strategic failure, loss of competitive advantage and final collapse. Though Dick Smith was one of the most popular retail brands in Australia, it didn’t survive owing to its strategic failure, and was acquired by Kogan in 2016. Thus, it is essential to identify and analyze the strategic decision-making in Dick Smith, as which can be taken as a warning, and then help organizations develop effective ones, since only effective strategic plan and implementation can positively impact the performance of the organization (Hanson et al., 2017).